Smart Export Guarantee 2026: How Much Can You Earn From Solar Exports?

What the Smart Export Guarantee is

The Smart Export Guarantee (SEG) is a UK scheme that requires larger electricity suppliers to pay solar owners for the surplus electricity they export to the grid. It replaced the old Feed-in Tariff for new installations and has run since 2020. Every eligible supplier must offer an SEG tariff, but the rate they pay is set by the supplier, not the government, so rates vary widely. To qualify you need an MCS-certified solar installation and a smart meter capable of recording your export every half hour. You can choose your export supplier independently of who supplies your imported electricity, with one important exception: some of the highest export rates are only available if you also buy your electricity from the same supplier. SEG income is one of the two ways solar pays for itself, alongside the bills you avoid by using your own generation.

SEG rates in 2026: what suppliers pay

SEG rates moved during 2026, and some headline figures from previous years are now out of date. The best flat-rate export tariffs sit around 12p per kWh, with the standard mandated floor much lower. The table below shows representative rates; always check the supplier's current offer before you register, as these change.

The pattern is clear: flat tariffs are simple and pay roughly 12p, import-linked tariffs can pay more if you switch your whole account, and variable tariffs reward households with a battery that can hold electricity and export it during high-price evening windows.

How to estimate your annual export income

Your SEG income depends on how much you export, which is the electricity you generate but do not use yourself. A typical home without a battery uses around 45% of what it generates and exports the rest. For a 4kW system generating about 3,600 kWh a year, that means roughly 2,000 kWh exported. At 12p per kWh, that is about £240 a year in export income. Add a battery and you use more of your own generation, so you export less but save more on bills, and on a variable tariff you can time exports for peak prices. Estimate your own figure with this simple method:

1. Estimate annual generation: roughly 850 to 950 kWh per kW of panels in the South West, so a 4kW system makes around 3,400 to 3,800 kWh.
2. Assume you self-consume around 45% without a battery, or 70% to 85% with one.
3. The remainder is your export. Multiply it by your export rate in pounds (for example 0.12 for 12p).
4. That gives your annual SEG income. Add it to your bill savings for total return.

Choosing the best SEG tariff

The right tariff depends on your setup. If you have solar only and no battery, a simple fixed tariff around 12p is usually the best balance of rate and simplicity. If you are willing to move your import account too, an import-linked export tariff can pay a higher rate, so compare the combined cost and income, not just the export figure. If you have a battery, a variable or agile tariff that pays peak rates can earn significantly more, because you can store cheap or self-generated power and export it when prices spike. Avoid sitting on the standard mandated floor of around 4p: it is the legal minimum and you can almost always do better by switching export supplier.

How SEG replaced the Feed-in Tariff

The Smart Export Guarantee came into effect on 1 January 2020, replacing the Feed-in Tariff (FiT) that had closed to new applicants on 31 March 2019. Under the old FiT, the government set a fixed payment rate for every unit generated and every unit exported, guaranteed for 20 or 25 years. The SEG works differently: it only pays for export (not total generation), the rate is set by each supplier rather than by government, and there is no long-term lock-in, so your rate can change or you can switch supplier. This means SEG income is more variable than the old FiT was, but the trade-off is that installation costs have fallen dramatically since the FiT era, so payback still works. Homeowners who installed under the FiT keep their original payments; the SEG applies only to systems installed after March 2019.

Is SEG income taxable for homeowners?

For most domestic homeowners, Smart Export Guarantee income is not subject to income tax. HMRC treats income from domestic microgeneration installations up to 16kW as exempt from tax under the property income allowance and the microgeneration exemption, provided the system is on or associated with your home and you are not running it as a commercial enterprise. This means you do not need to declare SEG earnings on a self-assessment tax return in the vast majority of residential cases. The exemption covers both the export payments and any deemed-export payments under older arrangements. If your installation is unusually large, sits on commercial premises, or forms part of a business activity, the position may differ and you should check with HMRC or an accountant. For a standard rooftop residential system, the income is yours to keep without a tax liability.

Common SEG mistakes to avoid

Several mistakes cost homeowners money or delay their SEG registration. The most common is failing to get a smart meter installed before applying, which is a requirement for half-hourly export measurement. Others include staying on the default mandated floor rate when better tariffs are freely available, or assuming your import supplier is automatically your export supplier. Below are the key pitfalls and how to sidestep them.

• No smart meter: you cannot register without one. Request an upgrade from your supplier before or at the time of installation.
• Staying on the floor rate: the mandated minimum of around 4p per kWh is not the only option. Shop around and switch export supplier for a better deal.
• Missing the MCS certificate: without this document from your installer, no supplier will register you. Confirm you have received it before they leave site.
• Not comparing export suppliers: you can export to a different company than you import from. Check several offers before signing up.
• Delaying registration: you only earn from the date you register, not the date your panels go live. Register as soon as your system is commissioned and your smart meter is active.

What this means for Gloucestershire homeowners

For homes across Cheltenham, Gloucester, Stroud and Tewkesbury, SEG income is a useful top-up rather than the main reason to go solar. The bigger saving comes from using your own electricity instead of buying it. Treat export income as the bonus that shortens your payback, and make sure any installer you use is MCS-certified so you can register for SEG at all. When you compare quotes, ask the installer for a realistic generation estimate for your specific roof, then run the export maths above. We can match you with vetted, accredited local installers so you start from firms that qualify you for SEG income from day one.